What Is Cloud Banking? Know All About It

There can be many ground reasons as to why banks should consider cloud computing, where one major is the banking applications. With the support of cloud computing, financial institutions just have to keep the budget for operational expenses and pay for services. With such ease, testing new applications on the cloud is much more cost-effective instead of traditional infrastructure.

There are a myriad of financial institutions that are still investing in the legacy systems while the cloud-based services are used in the new business areas. However, cloud services are expected to benefit both lower investment in business strategies and faster turnaround time for products and service offerings. 

Cloud computing offers various models to suit the business needs. Thus, banks must develop and maintain a portfolio of the application of both on-premise and cloud.

The key success for any business lies in selecting the appropriate match model that meets the needs.

Cloud Service Models 

Business Process-as-a-Service (BPaaS) - This service model unites other service models with the process of expertise. Generally, BPaaS is used in the standard business processes like payroll, human resources, or billing.

Software-as-a-service (SaaS) - This cloud service model is used for securing the business software-related data like accounting, invoicing, content management, customer relationship management, & more. All these software and data within them can be accessed through the web. 

Infrastructure-as-a-Service (IaaS) - With the help of this cloud model, you can certainly outsource your service instead of purchasing servers or software or data center space.

Platform-as-a-service (PaaS) - This model leverages the business to streamline their business, maintenance & support of the custom app, reducing IT cost & hosting software, or hardware environments. Here you may find a complete platform for the app, interface, storage, testing, and development (database). 

Cloud Development Models 

Here are three ways of deploying cloud -

Public Clouds  - The infrastructure of this cloud is designed by the organization that sells cloud services. This model is widely available for large industry groups or the general public.

Private Clouds - One of the most secure cloud options for those who want to operate cloud infrastructure solely.

Hybrid Clouds - This cloud model offers two or more clouds, both private & public, separately but linked together securely to provide services. 

Cloud Operating Models 

This is the third aspect of choosing cloud services delivery models for a mix of resources and assets.

Staff Augmentation

This aspect of the cloud model is for the businesses that want to outsource cloud services in Singapore. You can simply hire the right skill set from the best resources for each specific requirement.

Virtual Captives 

Instead of outsourcing cloud operations, you can look for a dedicated pool of resources or centers that can help your financial institution and meet the demand. 

Outsourcing Vendors 

The model is designed to amalgamate the resources and investments to cater to cloud services for multiple banks. This approach uses offshore centers, facilities, or third party vendors to handle the operations.

How Cloud Computing Drives Better Business?

We can say that financial institutions may move their non-core business to cloud computing at first. Many software providers, like the oracle, IBM, and Pegasystems are providing cloud-based solutions for the leading financial service applications. 

Value Enabled Cloud Transformation in Banking

Synchronize Enterprise 

Cloud can connect data sets in a deeper and much more sophisticated way, which can truly enhance collaboration and speedy decision-making capabilities to solve customer problems through new shared platforms & tools and insights & analytics. 

Drive Business Innovations 

Cloud computing can leverage upcoming tools like ML, AI, NLP, VR, AR, IR, etc which can enhance revenue by innovative strategies to build outstanding customer experience. Moreover,  Cloud can easily optimize operations and market offers as well as retain personnel cost-effectively. 

New Talent and New Ways to Work

The impact of cloud in financial institutions improves processes, like automation or human augmentation, which proportionately enhances productivity, agility, connectedness, lesser errors, and transparency. 

Also, aligning the new tech capabilities with business will benefit functioning as well as attracts youth operators to join the ecosystem and learn new skill sets like DevOps, agile, etc. 

Resilient Operations 

Cloud computing helps in optimizing organizations by gaining the ability to replicate data and app services across more than a single data center. Also, it enhances the overall resilience of the company by allowing them to quickly respond to the outages, disruptions, & many unprecedented situations. 

Enhancing IT Security

Cloud service providers across the world follow robust and extreme security standards & track records. This ensures any financial or other institutions that the platform they are using to enhance their business is absolutely secure when implemented with skilled and trained security correctly.

Scalable Computing Cost

Cloud computing offers cost-efficiencies by increasing or decreasing computing capacity as per the need. This enables the companies to respond to the market shifts, in terms of financial priorities, more quickly facilitating granular spending control.

Green IT 

Organizations indulging in the latest tools and technology are walking towards a green environment and less carbon footprint, which comes from setting a physical infrastructure. Thus, cloud computing is capable of transferring services virtually to the other system or environment, which leads to more efficient utilization of computing power and less ideal time.

Successful Implementation of Cloud Computing 

It is expected that the bank of 2030 will look differently but, to make cloud banking real, financial institutions have to work on implementing new strategies with the changing customer expectations, emerging technologies, & more. Cloud, undoubtedly is becoming a reliable house to store valuable data and applications to access the advanced software applications through the web.

In France, around 50% of cases are registered or involved in tricking companies in channeling payments to the fraud accounts. 

IBM build a blockchain in its Cloud for SiS, which acts as a tamper envisaging fraud. This cloud system verifies over 160,000 bank accounts and has helped reduce manual fraud control workload by 80%. This agile cloud architecture leverages SiS to easily scale systems and enhance the client base.

Another great example is the KPMG offering an end-to-end solution to the UK banking clients to help meet the regulatory needs. KPMG, along with enhanced Business Process Manager, developed an optimizer application. This leveraged the business analysts to create new business processes, which is 80% faster than the conventional BPM programmer skill set.

In the Nutshell -

Since the technology spends and growth projections have enhanced, cloud computing is considered one of the most disruptive technologies to shape the business as per the changing market needs. 

Organizations have started leveraging the cloud computing operational models that best suit their business and help create innovative products and services.

Cloud is cost-effective and secure allowing businesses to move non-critical services to cloud inclusive of maintenance, software patches, and other computing issues. This also allows financial institutions to work on the business rather than IT.

Cloud enterprise services are on-demand, require less infrastructure, and saves initial set-up time. The flexibility of the Cloud models also leverages a shorter development cycle of any product, which helps banking customers with effective and efficient responses swiftly.

Cloud Computing is a major milestone in the transformation journey of any small- or large-scale enterprise. So if you are looking for a cloud service provider in Singapore, Feel free to connect with us at info@vertexplus.com